Broadband Competition: An Anecdote

by on April 7, 2006

Who says there’s no broadband competition? While reading up on franchise reform, it occurred to me that I hadn’t tried the “threaten to switch and get a discount” tactic on my broadband provider, Charter. A 10-minute conversation with an extremely helpful gentleman cut my monthly bill nearly in half, from $52.99 to $29.99 in exchange for a one-year contract. And I only paid the $52.99/month for one month, because the first six month I was paying $26.99 in a 6-month introductory offer.

This was for “naked” broadband–I don’t watch TV and I’m cell phone-only. And it’s no doubt a result of AT&T’s aggressive $12.99 DSL offering. Cable Internet is considerably faster than DSL, so I’m happy to pay a moderately higher price for the faster speed. I remember paying over $50/month for a significantly slower DSL connection as recently as 2002.

Could things be even more competitive? Sure. But I think this illustrates that a duopoly is dramatically preferable to a monopoly. The best way to help the consumer is by cutting red tape for cable and telephone companies so they can continue undermining each others’ monopolies in voice, video, and data.

Oh, and if you aren’t currently getting some sort of discount from your broadband provider, give them a call and threaten to switch to the other team. Chances are you’ll get big savings on your monthly bill.

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